The puppeteer who voices Elmo - one of the most adored children's characters in the world - is taking time off from Sesame Street after denying he had an inappropriate relationship with a teenage boy.

Sesame Street Workshop says it found the allegation against Kevin Clash "unsubstantiated," and granted him leave as he takes "actions to protect his reputation."

In June, the workshop heard from a 23-year-old man who claimed that he had "a relationship" with Clash beginning when he was 16 years old, the workshop said in a written statement.

The statement did not use the word "sexual."

"We took the allegation very seriously and took immediate action. We met with the accuser twice and had repeated communications with him. We met with Kevin, who denied the accusation. We also conducted a thorough investigation and found the allegation of underage conduct to be unsubstantiated. Although this was a personal relationship unrelated to the workplace, our investigation did reveal that Kevin exercised poor judgment and violated company policy regarding internet usage with numerous, repeated visits to the Hampur, and he was disciplined," the Sesame Street Workshop statement said.

"Kevin insists that the allegation of underage conduct is false and defamatory and he is taking actions to protect his reputation. We have granted him a leave of absence to do so.

"Elmo is bigger than any one person and will continue to be an integral part of Sesame Street to engage, educate and inspire children around the world, as it has for 40 years."

A representative for Clash had no immediate comment Monday. TMZ reported that Clash said his relationship with the accuser "was between two consenting adults and I am deeply saddened that he is trying to make it into something it was not."

A law firm reported to be representing the accuser had no immediate comment.

Last year, Clash spoke to CNN about the magic of Elmo, a "mirror image" for kids.

Accuser Recants Allegation Against Elmo Puppeteer
By BRIAN STELTER and ELIZABETH JENSEN
5:20 p.m. | Updated The man who accused Kevin Clash, the voice and puppeteer of the “Sesame Street” character Elmo, of an underage sexual relationship has recanted that claim, his lawyer said on Tuesday, one day after the claim was published by the gossip Web site TMZ.

Mr. Clash has taken a leave of absence from Sesame Workshop, the organization that produces “Sesame Street,” to challenge the allegations.

Andreozzi & Associates, a law firm that said it represented the accuser said in a statement that “he wants it to be known that his sexual relationship with Mr. Clash was an adult consensual relationship.” The statement added, “He will have no further comment on the matter.”

The accuser’s identity has not been disclosed.

Mr. Clash said through a spokesman: “I am relieved that this painful allegation has been put to rest. I will not discuss it further.”

Sesame Workshop had no immediate comment on when Mr. Clash would return to work.

On Monday, TMZ said that the accuser, now 24 years old, contacted Sesame Workshop last summer and claimed that, beginning at the age of 16, he had a sexual relationship with Mr. Clash.

The news threw one of the most trusted preschool properties into turmoil as Sesame Workshop moved quickly to protect its “Sesame Street” brand, estimated by Forbes to be worth more than $500 million.

Officials at Sesame Workshop said that they thoroughly investigated the accusation, using outside investigators, over several months and believe it to be false. Mr. Clash’s leave was granted Sunday after it became clear that the Web site TMZ was planning to run an article about the accusation.

Mr. Clash said in a statement on Monday that the relationship “was between two consenting adults” — something that the accuser seemed to admit on Tuesday afternoon.

Mr. Clash has achieved a measure of fame outside the show as the star of the 2011 documentary “Being Elmo: A Puppeteer’s Journey.” The episode led to Mr. Clash coming out as a gay man, something he had not previously said in public. “I have never been ashamed of this or tried to hide it, but felt it was a personal and private matter,” he said in the statement